Origin cuts capex for next two years 

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Origin cuts capex for next two years  Origin cuts capex for next two years  Origin cuts capex for next two years  Origin cuts capex for next two years  Origin cuts capex for next two years 

APLNG

Helen Clark

Editor

ORIGIN Energy has said it will not disconnect residential or small business owners in financial distress until "at least" the end of July. 
 
It says there has been no material impact on its energy supply operations, and no issues with fuel availability. 
 
However in line with other LNG producers, the company said it would cut spend this year. 
 
"While Origin is clearly being affected by both COVID-19 and the significant reduction in oil prices action taken in the last three years to simplify the business, significantly reduce upstream costs at Australia Pacific LNG and materially reduce debt has put us in a financially resilient position," CEO Frank Calabria said. 
 
It expects to maintain earnings in its Energy Markets division and guidance for EBITDA for financial 2020 of $1.4 billion to $1.5 billion is unchanged. 
 
Cash distribution of $1.1 billion to $1.3 billion from APLNG is unchanged.
 
However capital expenditure for the financial year will be cut by 5%-10% and financial 2021 cost reductions include a 25%-30% cut in capex for the company and a $300 million to $400 million cut in capex at APLNG.  
 
Origin also confirmed earlier news from its joint venture partner Falcon Oil and Gas in the Beetaloo Sub-basin, that it would defer its appraisal program of the Velkerri shale play until next year. 

 

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